In a recent CNBC interview, Wedbush’s renowned tech analyst Dan Ives said that the recent tech selloff is a buying opportunity. He argued that we’re still in the early innings of a multi-year bull cycle for enterprise AI. Tech behemoths like Microsoft, Nvidia, and Alphabet continue to dominate hedge fund portfolios due to their scale, innovation, and growing influence in both commercial and government sectors.
Names such as Palantir, while volatile, are attracting attention for their role in AI implementation across public and private sectors. Ives notes that only a small percentage of companies have begun adopting AI tools at scale and that the runway for growth remains massive, especially outside the U.S.
With hedge funds favoring high-quality names that are building the digital infrastructure of the future, it’s clear the tech rally isn’t over; it’s just evolving. And for patient investors, these “AI core winners” may still have plenty of upside left.
Our Methodology
To identify the 12 best tech stocks to buy according to analysts, we used Finviz’s screener to choose stocks in the “Technology” sector. We included only those tech stocks that had an upside of at least 20%. We sorted the final list in ascending order of hedge fund sentiment as of Q2 2025. We broke ties based on market cap by ranking the larger company higher.
Note: All data was recorded on September 2, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Tech Stocks to Buy According to Analysts
12. CoreWeave, Inc. (NASDAQ:CRWV)
Average Analyst Upside: 37.9%
Number of Hedge Fund Holders: 29
Market Cap: $45.06 billion
CoreWeave, Inc. (NASDAQ:CRWV) is one of the best tech stocks to buy according to analysts. On August 27, Cantor Fitzgerald initiated coverage of CoreWeave, Inc. (NASDAQ:CRWV) with a Buy rating along with a price target of $116.
The firm noted the cloud company’s “significant AI market opportunity” despite the 131% run since its IPO on March 28 2025. That said, the stock has retreated by a little over 50% since topping at $187 on June 20.
CoreWeave, a pioneer in specialized AI cloud services provider has benefited from huge, long-term partnerships with companies like Nvidia and Microsoft, with the latter accounting for a huge portion of its revenue. This year the company has been spreading its wings in AI data centers across US and Europe, including a $6 billion data center in Pennsylvania.
However, the company has raised substantial debt in order to fuel its growth. As of Q2 2025, the company had a total debt of $11.05 billion on its balance sheet. Also, the company’s valuation remains a concern for some analysts, with the TTM price-to-sales ratio standing at 12.85x. That said, Wall Street expects the company’s revenue to grow to nearly $12 billion in 2026.
11. IonQ, Inc. (NYSE:IONQ)
Average Analyst Upside: 23.23%
Number of Hedge Fund Holders: 30
Market Cap: $12.60 billion
IonQ, Inc. (NYSE:IONQ) is one of the best tech stocks to buy according to analysts. On August 27, B. Riley’s analyst Craig Ellis initiated coverage of quantum computing stock IonQ, Inc. (NYSE:IONQ). Ellis gave IonQ a Buy Rating along with a 12-month price target of $61. As of September 2, the stock was trading at $42.42, which implies an upside of 43.8%.
Ellis noted that the company is the sector’s revenue growth leader, with three consecutive years of 100% year-over-year growth. Ellis cited the “progressing” pipeline, with a fifth-generation product set to launch later this year.
The company is making huge strides with a focus on its trapped-ion technology. The trapped ion technology helps generate extremely reliable quantum bits (qubits) that can stay stable for a long time and work accurately. This is crucial for solving extremely complex problems that conventional computers can’t handle. The trapped Ion technology also provides a cost advantage over other methods like superconducting qubits.
IonQ, Inc. (NYSE:IONQ) has also acquired some companies to help expedite its progress in quantum computing. For example, it acquired Oxford Ionics, a company that develops technology promising higher ion trap density, which helps improve computing power.
10. Dynatrace, Inc. (NYSE:DT)
Average Analyst Upside: 26.18%
Number of Hedge Fund Holders: 40
Market Cap: $15.11 billion
Dynatrace, Inc. (NYSE:DT) is one of the best tech stocks to buy according to analysts. On August 27, Oppenheimer initiated coverage of Dynatrace, Inc. (NYSE:DT) with an Outperform rating and a price target of $65. As of September 2, the stock was trading at $50.11, a 29.7% implied upside.
The firm noted that Dynatrace, Inc. (NYSE:DT) is a leading observability vendor with a platform built on its Grail data lakehouse and Davis artificial intelligence engine. Oppenheimer cited that the company’s revenue growth can see a “meaningful uplift” as its pricing plan removes purchasing friction and drives multi-product use. Oppenheimer also believes that consensus estimates for the company are low.
The company is currently focusing on developing its third-generation platform, which emphasizes on autonomous intelligence. Dynatrace is leveraging the company’s Davis AI, which will help provide actionable insights and automated remediation to enterprises. This will be a departure from only providing reactive operations and preventive measures.
The stock is trading at a forward P/E ratio of 27.67x, which is reasonable given that Wall Street expects the company to grow its revenue in double digits in 2026, and its margins have been steadily improving.
9. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Average Analyst Upside: 21.57%
Number of Hedge Fund Holders: 47
Market Cap: $35.03 billion
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the best tech stocks to buy according to analysts. On August 20, JP Morgan analyst Tien-tsin Huang maintained the Overweight rating on Cognizant Technology Solutions Corporation (NASDAQ:CTSH), while reducing the price target from $101 to $89. As of September 2, the stock was trading at $71.77. Despite the sharp cut in price target, Huang’s implied upside for the stock stands at 24%.
Huang updated the targets in IT services post the Q2 reports, and noted that the sector is in its third straight year of below-average revenue growth. The analyst cited below-par growth and noted that an improvement in growth is needed to drive valuation multiples higher. However, Huang is optimistic that the sector growth will improve.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) launched Cognizant Agent Foundry in July to help its clients in deploying AI-powered agentic systems. The company has also announced key partnerships, including those with Pearson, Writer, and Google Cloud. These partnerships will help accelerate AI adoption, enhance enterprise transformation, improve customer service, and equip workers with essential AI and digital skills.
8. Roper Technologies, Inc. (NASDAQ:ROP)
Average Analyst Upside: 25.45%
Number of Hedge Fund Holders: 54
Market Cap: $55.69 billion
Roper Technologies, Inc. (NASDAQ:ROP) is one of the best tech stocks to buy according to analysts. On August 19, Citi analyst George Kurosawa initiated coverage on Roper Technologies, Inc. (NASDAQ:ROP) with a Buy rating and a price target of $626. As of September 2, the stock was trading at $517.59, which means Kurosawa’s implied upside is still 20.9%.
According to the analyst, Roper’s latest “more subtle” evolution has gone overlooked by investors, with expanded operational and capital allocation capabilities. According to Kurosawa, that should drive higher value capture and a path to accelerating organic growth.
He also cited that AI is “more opportunity than threat” for the company. He added that the company is leveraging advantages from vertical-specific scientific data/expertise and the agility of the company’s decentralized operating model.
Roper Technologies saw robust Q2 earnings. The company continues to see traction in its software businesses like Deltek, Vertafore, PowerPlan, and Aderant. Advances in AI, especially generative AI, are helping boost results. Its construction software business, ConstructConnect, is also growing due to high demand for AI-powered tools.
7. Dell Technologies, Inc. (NYSE:DELL)
Average Analyst Upside: 24.83%
Number of Hedge Fund Holders: 54
Market Cap: $82.12 billion
Dell Technologies, Inc. (NYSE:DELL) is one of the best tech stocks to buy according to analysts. On August 29, Wells Fargo maintained its Overweight rating on Dell Technologies, Inc. (NYSE:DELL), while reducing the price target from $160 to $150. As of September 2, the stock was trading at $120.96, an implied price target of 24%. The company reported its Q2 FY 2026 earnings on August 28. The stock has declined nearly 10% since then.
Wells Fargo noted that the persisting concern over AI sever margin remains a worry and was the cause for the decline in the stock, despite a top/bottom line beat. However, the firm said that it is a buyer on a pullback.
Dell’s Infrastructure Solutions Group (ISG), which includes servers, saw an operating margin of 8.8% in Q2, falling below expectations of 10.3%. Dell’s AI server margins are coming under pressure due to high hardware costs, like NVIDIA’s GPU, and Dell’s strategy to price aggressively to maintain its share in the booming AI server market. However, the company’s AI server backlog remains strong, reaching $11.7 billion at the end of the quarter.
6. Okta, Inc. (NASDAQ:OKTA)
Average Analyst Upside: 35.2%
Number of Hedge Fund Holders: 57
Market Cap: $15.79 billion
Okta, Inc. (NASDAQ:OKTA) is one of the best tech stocks to buy according to analysts. On August 27, Barclays maintained its Equal Weight rating on Okta, Inc. (NASDAQ:OKTA), while raising the price target from $100 to $112. On September 2, the stock was trading at $89.5, which means that the firm has an implied upside of 25.13% on the stock. Okta reported its Q2 Fiscal Year 2026 on August 26.
Okta’s fiscal Q2 “clean” remaining performance obligation (RPO) growth of 14% year-over-year to $4.15 billion was in line with Barclays’ upside scenario. Barclays believes that the company’s increased fiscal year revenue guidance outlook of 11% growth removes “conservatism”.
Okta generated revenue of $728 million, growing a solid, if unimpressive 13% year-over-year. The growth was driven by robust demand for its unified identity platform, especially from the public sector.
Okta’s strong RPO growth is indicative of strong growth in its subscription backlog for its identity security solutions.
Meanwhile, the company reported an EPS of $0.91 per share, representing a 7.5% earnings surprise. The company’s net margins have shown strong improvements in the last two quarters. In Fiscal Q2, the company’s margin stood at 9.2%, compared to Fiscal Q1’s 9.01% and 1.07% in Fiscal Year 2025. The improved earnings mean the stock trades at a reasonable forward P/E of 24.89x.
5. Nutanix, Inc. (NASDAQ:NTNX)
Average Analyst Upside: 31.21%
Number of Hedge Fund Holders: 58
Market Cap: $17.99 billion
Nutanix, Inc. (NASDAQ:NTNX) is one of the best tech stocks to buy according to analysts. On August 28, JP Morgan maintained its Overweight rating on Nutanix, Inc. (NASDAQ:NTNX) while trimming its price target from $90 to $81. On September 2, the stock was trading at $67.12, which represents a 20.67% implied upside. The firm’s research note comes after Nutanix reported its Q4 Fiscal Year 2025 earnings on August 27. The bank expects the stock to “remain muted” in the near-term.
The company generated revenue of $2.54 billion for fiscal year 2025 and $653.27 million in Q4, a 19.22% year-over-year growth from the same quarter last year. The strong finish to the fiscal year was driven by subscription growth and strong customer acquisition.
More importantly, the company saw a turnaround in margins during the fiscal year. In FY 2025, the company’s net margin stood at 7.42%, a huge improvement from -5.81% in the previous year. The company’s forward P/E ratio stands at a reasonable 29.58x.
4. Marvell Technology, Inc. (NASDAQ:MRVL)
Average Analyst Upside: 38.77%
Number of Hedge Fund Holders: 76
Market Cap: $55.7 billion
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the best tech stocks to buy according to analysts. On August 29, JP Morgan maintained an Overweight rating on Marvell Technology, Inc. (NASDAQ:MRVL), but reduced its price target from $130 to $120. The price target trim comes after the semiconductor company reported its Q2 Fiscal Year 2026 results on August 28. The stock has plummeted over 15% since reporting its earnings. However, the new price target still represents a whopping 85.75% upside from its market price of $64.6 as of September 2.
The stock fell post earnings due to its disappointing guidance for the key data center segment, its largest and by far its most important segment. The company guided that its data center business would be flat in the Fiscal Q3 on a sequential basis. This is a huge miss as a high portion of the stock’s value is derived from the high growth expectations driven by the booming AI sector.
According to JP Morgan, the chip company reported in line with the July quarter results, with upside in consumer demand being offset by weaker demand trends in the data center. However, the bank sees a “solid setup” for the company going forward, driven by continued recovery in its cyclical business and AI growth tailwinds.
3. Workday, Inc. (NASDAQ:WDAY)
Average Analyst Upside: 22.3%
Number of Hedge Fund Holders: 76
Market Cap: $61.11 billion
Workday, Inc. (NASDAQ:WDAY) is one of the best tech stocks to buy according to analysts. On August 22, Oppenheimer analyst Brian Schwartz maintained an Outperform rating on human capital-related Cloud provider Workday, Inc. (NASDAQ:WDAY), while trimming its price target from $300 to $270. The updated price target came one day after the company reported its Q2 Fiscal Year 2026. The stock has been very choppy since the earnings results. However, the price target implies an upside of nearly 18% from the market price of $228.89, as of September 2.
Schwartz noted that the company reported in line Q2 results and cited strong AI bookings and momentum in industries, but cautioned that the guidance second half of the year was “uninspiring”. He also noted that the beat was of small magnitude.
Schwartz also noted that the company’s organic revenue guidance is weaker than 90 days ago. He cited “group” multiple compression for the target cut.
The company’s revenue stood at $2.34 billion in fiscal Q2, a 12.5% year-over-year growth, which is a deceleration from the 17% growth it saw in the previous fiscal year. Meanwhile, Workday’s EPS was $2.21 per share for the quarter, a 4.5% surprise.
2. Datadog, Inc. (NASDAQ:DDOG)
Average Analyst Upside: 23.57%
Number of Hedge Fund Holders: 103
Market Cap: $46.97 billion
Datadog, Inc. (NASDAQ:DDOG) is one of the best tech stocks to buy according to analysts. On August 18, Citigroup maintained its Buy rating on Datadog, Inc. (NASDAQ:DDOG), while increasing its price target from $165 to $170.
The company generated $826.76 million in revenue in Q2 2025, a 28.1% growth year-over-year. This stellar growth was driven by customer growth, especially in the AI-native sector. It reported an EPS of $0.46 per share, a solid beat compared to Wall Street estimates of $0.41 per share. Datadog has been working on new innovative products, which will help it cement its niche position as the fast-growing AI/cloud company.
However, the company’s margins have narrowed aggressively over the last two quarters, as the company is spending aggressively in research and development, and sales and marketing. While this may lead to long-term growth, it’s hurting valuations currently. The stock is trading at a forward P/E ratio of 62.72x. Meanwhile, hedge funds have been loading up on DDOG over the second quarter of this calendar year. As of Q2, 103 hedge funds had invested in the stock, compared to 84 in Q1.
1. Microsoft Corp (NASDAQ:MSFT)
Average Analyst Upside: 24.78%
Number of Hedge Fund Holders: 294
Market Cap: $3.75 trillion
Microsoft Corp (NASDAQ:MSFT) is one of the best tech stocks to buy according to analysts. On September 2, the US General Services Administration said that Microsoft Corp (NASDAQ:MSFT) has agreed to give the U.S. agencies a discount on its cloud services. The move comes amid the administration’s push to sign deals with tech companies.
The discount from the tech behemoth could amount to $3 billion in the first year, the GSA said. While the size of the deal is not mentioned, the sheer size of the discount means that this could be a very large federal commitment. Even though the company’s margins might take a small hit, the size of the contract and the lock-in effects are a net positive for Microsoft. The deal is available for federal agencies to opt into through September 2026, giving the cloud giant a multi-year runway to expand its footprint within the U.S. government.
As a part of the deal, Microsoft will offer its Gen AI Chatbot, Microsoft Copilot, for free to current government users. Federal agencies will also get discounted prices on cloud products like Azure and Microsoft Sentinel. Offering free access to the chatbot to the federal users unlocks the bot to a large user base.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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